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The settlement, if granted final approval, will resolve the claims asserted against RE/MAX, LLC and release RE/MAX affiliates on a nationwide basis.
DENVER, Nov. 20, 2023 /PRNewswire/ -- RE/MAX®, the #1 name in real estate*, today announced the Missouri court granted preliminary approval of its settlement in the class action lawsuits known as Burnett, Moehrl and Nosalek, and any similar claims on a nationwide basis.
To address the pending litigation and mitigate the uncertainties and costs associated with prolonged legal proceedings, RE/MAX, LLC entered into a settlement agreement with plaintiffs on October 5, 2023. RE/MAX, LLC agreed to pay $55 million and make changes to business practices as part of the settlement. The proposed settlement would resolve on a nationwide basis all claims asserted against RE/MAX, LLC and includes releases for all U.S. RE/MAX independent regions, franchisees and agents. RE/MAX, LLC continues to deny the allegations made in the complaints and does not acknowledge any wrongdoing.
Under the terms of the proposed settlement, RE/MAX, LLC has deposited 25% of the agreed-upon $55 million into a settlement fund; 25% is due within 10 business days after preliminary approval; and the remainder within 10 business days after final court approval.
"We are pleased with the court's decision to grant preliminary approval of the settlement," said Nick Bailey, President and CEO of RE/MAX, LLC. "This development signifies progress in our ongoing efforts and commitment to a resolution – it's a positive step forward in bringing these cases closer to the finish line."
If the settlement is granted final approval by the Missouri court, all U.S. RE/MAX affiliates, including franchisees and agents, will be protected from claims connected to the lawsuits and any similar claims. At this time, final approval is expected sometime next year. The business practice terms of the settlement must be implemented within six months of the final effective date. Apart from the $55 million payment, RE/MAX, LLC does not expect the terms of the settlement agreement to have a material impact on its results of operations and cash flows.
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